Regulatory consultancy BDO is warning the FCA is set to place a greater burden on regulated firms through increased data collection.
BDO financial services risk partner David Morrey says advisers are being used as “crash test dummies” for new supervisory techniques under the FCA.
For example, he says advisers will soon be asked for lots of data in response to an upcoming thematic review on enhanced transfer values for pensions.
Morrey says: “The FCA is collecting a lot more data about the profitability of products and analysing this data. It can be burdensome on firms.
“It has spent a lot of money developing analytical tools to read data. Rather than having a relationship with every regulated firm it will collect lots and lots of data to decide where it should target its manpower.”
FCA chief executive Martin Wheatley has previously said he will focus regulatory attention where firms are making high margins and profit from products, while Treasury select committee chair Andrew Tyrie has hit out at the FCA for “mindless” data collection from regulated firms.
An FCA spokesman says: “Data and information are vital to our success, supporting our aim to be a forward-looking, risk-based regulator that operates efficiently.
“Good quality data, handled well and available quickly, will give us deeper insight into the markets we regulate and allow us to be more efficient at identifying and tackling risks.”
Jacksons Wealth Management managing director Pete Matthew says: “Collecting more data makes sense in theory as long as it does not add to the regulatory burden, which is already fairly intense. I would like to see more transparency about how the data is used.”